By Jody Godoy

WASHINGTON (Reuters) -The U.S. Federal Trade Commission announced actions against five companies on Wednesday that it said used artificial intelligence in deceptive and unfair ways.

Three of the cases suspended operations at businesses that purported to help consumers generate passive income by opening e-commerce storefronts. The FTC also settled with a company called DoNotPay over its claim to provide automated legal services, and with Rytr, an AI writing tool that the agency said offered a feature that allows users to generate fake product reviews.

“Using AI tools to trick, mislead, or defraud people is illegal,” said FTC Chair Lina M. Khan said in a statement. “The FTC’s enforcement actions make clear that there is no AI exemption from the laws on the books.”

(Reporting by Doina Chiacu; Editing by David Ljunggren and Aurora Ellis)